AbstractFour types of relationships constituting an economic model of production are specified in order to deduce the mathematical form of the production function. A technical equation restricts the production function to be a member of the homogeneous class. A behavioral equation describes the profit‐maximizing character of the producer. An empirical equation attempts to explain the average productivity of labor. Finally a demand function reflects the structure of the output market. The derived production function is seen to fall into the widely discussed CES‐VES family. The economic model thus in a sense provides a theoretical basis for the CES‐VES production functions. The economic properties of the derived production function are also studied in detail and alternative estimation procedures are reviewed criti